Home Southern Africa Zambia’s Decision to hike power tariffs caught in Polemics

Zambia’s Decision to hike power tariffs caught in Polemics

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Zambia’s proposed electricity tariff structure is a mixed bag, experts say.  Some lauded the proposed tariffs as a way for ZESCO to collect more revenues, while others criticize it as an indirect way of imposing higher costs of living on low-income households

Zambia’s proposed electricity tariff structure is a mixed bag, experts say.  Some lauded the proposed tariffs as a way for ZESCO to collect more revenues, while others criticize it as an indirect way of imposing higher costs of living on low-income households.

Dr. Fred M’membe, the President of Zambia’s Socialist Party described it as a move that would further burden already struggling Zambians. He said that it would cast a burden on ordinary Zambians, particularly the poor.  The majority of Zambians, who would be affected by this move would be poor people. The large middle to upper-class population, who will bear the brunt of the price increase, are struggling with high costs of living. He wanted the government to address the underlying issues facing the energy sector, such as lack of investment in renewable energy sources, instead of going for a tariff hike.

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The Energy Regulation Board (ERB) has defended its decision to approve the adjustment to ZESCO’s tariffs, by arguing that it has taken into account ZESCO’s financial position and consumer submissions, and the aim is to strike a balance between the utility’s viability, affordability, and government aspirations. The new tariffs will be effective May 1st, 2023.

Zambia’s Green Party President Peter Sinkamba has called for urgent action on food security while criticizing the government’s approach for procuring 250,000 metric tonnes. He termed that as insufficient and called on the government to take food security seriously

The Green party leader also expressed concern about the poor roll-out of the Fertilizer Input Support Program (FISP), which he believed would negatively impact maize production. He also criticized the government’s reliance on the private sector to purchase the remaining 2 million metric tonnes of maize, mentioning that the private sector could not be relied upon to ensure food security for the country. The government should invest in storage facilities and infrastructure to meet its domestic and industrial needs. Investments in research and development are equally important, he added while exhorting the government to take food security seriously.